Atmel and EADS Defence & Security Networks -- EDSN -- Form Alliance for 3rd Generation PMR Development; Aim is to Develop a Platform for Professional Mobile Radio Systems Worldwide.

Business Editors/High-Tech Writers

ROUSSET, France--(BUSINESS WIRE)--March 26, 2001

Atmel(R) Corporation (Nasdaq:ATML) and EADS Defence & Security Networks (EDSN) announced today the signature of a major alliance for the development of a platform for 3rd generation Professional Mobile Radio worldwide.

The technological migration from analog to all-digital in the worldwide market for Professional Mobile Radio (PMR) has accelerated in recent months, opening up major new possibilities. To take advantage of this trend, EADS Defence & Security Networks and Atmel will collaborate in the development of 3rd generation integrated circuits aimed at the world PMR market. The ICs will cover both the radio and the baseband domains.

This chipset will address all the sectors of the PMR market (Emergency Services, Public Security, Industrial Sites, etc.), to ensure a worldwide geographic coverage and to enhance the functionality of the products according to emerging needs (GPS, wireless LAN, etc.). The new PMR platform will at the same time support the GSM standard to enable professional users to interface with the general public, while conserving the specific features of a secure professional digital network.

For EDSN, world leader in digital PMR due to its Tetrapol technology, the evolution to 3rd generation products will enable its users to amortize their investments, and guarantee them access to the latest technologies. For Atmel, these developments are consistent with its strategic focus on mobile communications.

Alfredo Vadillo, Atmel's ASSP and Custom Products Director, commented, "Atmel's collaboration with EDSN in this R&D project puts us at the leading edge of the technology. This agreement will enable us to repeat the success we had in the development of the Tetrapol baseband IC. Atmel brings to this partnership our SiGe technology for RF, and the richness of our analog and digital functional blocks, as well as our market-leading expertise in system-level integration. This complements EDSN's competence in applications, and its experience arising from a worldwide installed base. Together, this should enable us to develop a winning product."

Jean-Pierre Quemard, Director of Research and Development at EDSN, stated, "This second partnership follows the logic of our previous collaboration with Atmel. This long-term agreement between our two companies has already borne fruit with the development of the Tetrapol baseband chip, now integrated into EDSN's 2nd generation portables. This new technological alliance reinforces the links between our two companies. It is a major step forward in the deployment of digital professional PMR on a worldwide scale by developing a 3rd generation PMR platform that is inter-operable and multi-mode, guaranteeing multi-sourcing."

Atmel Corporation

Founded in 1984, Atmel Corporation is headquartered in San Jose, California with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, nonvolatile memory and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, bipolar SiGe, and high-voltage BCDMOS process technologies.

Atmel product and financial information may be obtained from its Fax-on-Demand service. In North America call 1-800-292-8635 or Internationally, call 1-408-441-0732. Requests may be made via e-mail to [e-mail] or by visiting Atmel's web site at www.atmel.com.

EADS Defence and Security Networks (EDSN), a Nortel Networks associated company

EADS Defence & Security Networks (EDSN) is a global supplier of telecommunication network solutions for the Security and Defence markets, based on civil technologies. In this field, EDSN is the world Excellence center of its two powerful shareholders: EADS, European Aeronautic Defence & Space Company, European leader and 3rd worldwide company in its activities, and Nortel Networks, worldwide leader for High Performance Internet Networks.

EDSN is world's number one for secured digital radio networks, through expertise gained since 1987 by Matra Nortel Communications, from which company it evolved, and has 47 networks to the Tetrapol standard, both being deployed and operating, in 24 countries, including 13 in Europe, which, in time, will represent almost 750,000 users and a coverage of 4 million km2.

EDSN is also an architect and integrator for stationary or transportable voice/data infrastructures and has built several operational networks for the French Army. EDSN, in 2000, had a turnover of 334 million Euros with 1400 people employed, mainly across France, Germany, Spain, and Mexico.